OnPointe IUL Comparisons

This information goes along with my newsletter titled: F&G approves IUL comparison software.

Click here to download the OnPointe IUL vs. brokerage account comparison (17-page report)
Click here to download the OnPointe IUL vs. 401(k) plan comparison (18-page report)

Click here if you want to download the order form so you can start using the industry’s best IUL comparison tool for FREE.

FYI, the default of the software is to compare level retirement cash flow scenarios. However, you can toggle it to show the same annual cash flow to show the IUL in a different light (see the below chart)

In the newsletter I used my classic example client:

45-year old healthy male
$15,000 a year into the F&G trail commission product until age 65
7.16% ROR in the in IUL and 8.5% gross for the brokerage account (so this is heavily slanted in favor of growing money in the stock market)

Additional terms not included in the newsletter:

15% capital gains tax annually on the brokerage account (to learn more about what is an appropriate cap. gains tax click here).
25% income tax rate at funding and in retirement.

Retirement Cash flow comparisons (annually from age 66-90):

$42,496 = Taxable brokerage account
$78,544 = IUL via tax-free borrowing    

$36,048 = Difference annually
$901,200 = Total difference ages 66-90

Tax-deferred 401(k)—for this example, I’m going to assume the client is in the 25% income tax bracket now and in retirement. The software grosses up the contribution to the 401(k) plan based on the client’s income tax bracket ($20,000 goes into the 401(k) for this comparison).

$49,257 = Annual after-tax distributions from the 401(k)               

$29,287 = Difference annually
$732,175 = Total difference ages 66-90

Total “trail” commissions from sale

$7,492 = Five year total
$15,905 = Ten year total
$141,971 = Age 90 total

Why not use a better IUL product and one that over time will pay you 250% more in commissions?

Roccy DeFrancesco, JD, CAPP, CMP
Founder, The Wealth Preservation Institute
Co-Founder, The Asset Protection Society
269-216-9978
roccy@thewpi.org